Considering investing in an offshore property somewhere in Europe, Asia, North/South America or even just outside your own city? Here are some things to keep in mind…
Is It A Good Investment Opportunity
You know what they say about real estate: they stopped making it a long time ago.
Real estate can appreciate 7% to 8 % or more a year in certain coastal cities like Vancouver, Sydney or San Francisco, which means that it doubles in value every 10 years (it may not be the case in other parts of the world so make sure you do your homework before taking the plunge as it may not go up in value as much elsewhere).
That said, you do have to pay all the necessary property taxes, condo association fees and insurance premiums while you own the property and look after it from afar.
This means doing all the necessary repairs and maintenance to make sure that your home stays in tiptop condition (and doesn’t deteriorate) until you sell it.
You will have to do this through a property manager (make sure to hire a reputable one), especially if your investment property is offshore.
Not only will they take care of maintenance, but they can also find a tenant in your absence.
Will it be Less Expensive/Convenient than Staying at a Hotel
If you like to go to a certain location every year, you can save a ton of money staying at a property that you own rather than paying for a room at a hotel or a B&B.
Plus it’ll be available for your immediate use whenever you feel like visiting your vacation home, unlike a hotel which can be fully booked at certain times of the year (like in Christmas or Summer) and therefore unable to accommodate you.
The only problem with this arrangement is that you will have to go visit the same place year in and year out.
If you’re the type of person that wants to explore different places each year rather than the same one over and over then it might not work for you to buy a home in another city, except if you already own a business there or if you really love to go back to a particular locale repeatedly.
People who fall in love with a specific place try and set up a business, find a local job or are able to work from anywhere to justify the remote home purchase.
Otherwise, just stay in a hotel so you don’t have to worry about renting out or maintaining your out-of-town property while you’re not staying in it.
Will it be Worth the Bragging Rights and/or Ego Satisfaction
If you’ve always wanted to own a home outside your own city to show off (or even just brag about) to friends and family buying out-of-town property is certainly something to consider.
However, remotely located residences aren’t something that you can easily access or enjoy using very often since they’re not close by. If you want something that will elevate your status or make you look (and feel) good, you may want to invest in assets that are closer to home, like fine art.
Not only does it appreciate in value over time, but it’s something that you can also see and touch every day of your life.
You can also consider building a collection of vintage watches that you can wear daily, fine wines that you can drink, or classic cars that you can drive every day.
Collectible vehicles like Porsche 911s, Mercedes Benz convertibles or Jaguar D or E types are things that you don’t need to worry about from afar as you can enjoy them right in the comfort of your own home (and city).
Know anyone thinking of buying a house for investment purposes?
Please forward our email@example.com email – or (604) 321-8008 phone number – so that we can help them renovate or redecorate their new property.